The European Union is poised to retaliate against the US’ planned 25% tariffs on auto imports, escalating tensions in the trade dispute. The move aims to level the playing field for EU firms like Volkswagen AG and Volvo AB, which stand to lose billions of dollars in profit.
However, UK billionaire Jim Ratcliffe’s Ineos Automotive Ltd. blames the EU for not convincing Trump to back down from the tariffs. But this assessment is misplaced. Efforts by EU leaders to cajole, flatter, or force the US administration’s hand have been unsuccessful.
The EU had previously imposed retaliatory tariffs on US goods, including a 200% tariff on champagne and wines, in response to the US’ steel and aluminum tariffs. Yet even the UK, whose Brexit deal was supported by Ratcliffe, has not secured an exemption.
As tensions rise, France’s President Emmanuel Macron warned that the EU needs to consider the broader implications of a trade war, including the risk of recession. “How do you want us to increase security and defense expenditure if we are in a trade war?” he asked recently. The EU must find a new strategy to navigate these complex negotiations and protect its interests.
Source: https://www.bloomberg.com/opinion/articles/2025-03-31/eu-tariffs-ineos-billionaire-jim-ratcliffe-s-tariff-blame-is-misplaced